US stocks open higher at the end of another bruising week

US stocks open higher at the end of another bruising week

Stocks rose in morning trading on Wall Street Friday, but are still headed for another week of declines following a massive pullback two days ago

May 20, 2022, 2: 32 PM

3 min read

NEW YORK — Stocks rose in morning trading on Wall Street Friday, but are still headed for another week of declines following a massive pullback two days ago.

The S&P 500 rose 0.3% as of 10: 14 a.m. Eastern, but it is still solidly on track for its seventh straight weekly decline after getting close to entering a bear market this week. The Dow Jones Industrial Average rose 48 points, or 0.2%, to 31,301 and the Nasdaq rose 0.3%.

All three are expected to drop by 2% or more this week.

Technology stocks and health care stocks saw broad gains. Pfizer rose 3.6%, and Apple rose 1. The tech sector has been especially volatile and has prompted many of these big swings in market throughout the week.

Bond yields edged down. The yield on the 10-year Treasury fell to 2. 83% from 2. 85% late Thursday.

Concerns about inflation have been growing heavier with Russia’s invasion of Ukraine pushing energy and some key food commodity prices higher. China, the world’s second-largest economy, took a renewed hit from lockdowns in key cities because of COVID-19 cases, but a surprise interest rate cut from the Chinese government has at least temporarily eased some anxiety.

Markets made solid gains in Asia and Europe.

Wall Street is currently analyzing earnings from retailers. Investors are trying to gauge the impact inflation is having on company operations, and whether consumers are putting more pressure on their spending by focusing on this sector.

Retail giants Target, Walmart and others warned this week that inflation could be a problem for their finances. Discount retailer Ross Stores plunged 22.2% on Friday after cutting its profit forecast and citing rising inflation as a factor.

Several retailers were rewarded with encouraging results. Ugg footwear maker Deckers Outdoor rose 18.6% and Foot Locker rose 5% after beating analysts’ earnings forecasts.

Investors continue watching the Fed for hints of more interest rate hikes to cool inflation that is running at a four-decade high. Jerome Powell, Fed Chair, said this week that the U.S. central banking might take more aggressive measures if price pressures continue to rise.


ABC News


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